Ranching couple waited to make a decision on a conservation easement until their children were old enough to participate
A decision to apply a conservation easement to about 2,000 acres of native grassland and protect it forever was put on hold until Terri and Brad Mappin’s teenage children could be part of the discussion. “It was something important for the kids to understand the implications of it,” said Terri. The family doesn’t know if […] Read moreTag Archives succession planning
Set a landmark on the horizon to guide land acquisition
There are many tax incentives for farmers owning farmland including the lifetime capital gains exemption and the intergenerational rollover of farmland to a child or grandchild. Both can save or defer significant tax but require the land be owned personally for maximum flexibility.
Move to town next step in retirement transition
Alberta couple recently sold the rest of their bison and a half section of farmland and organized their spring farm auction
At the end of April, the couple held an online auction and sold their antiques, fuel tanks, sprayers, bison-handling equipment, stock waterers, vehicles and a life-time collection of odds and ends from the farm. When buyers came to look at the auction items, whether it was an iron, cream separator or lantern, it all sparked a conversation.
Recent federal budget broadens alternative minimum tax
The federal budget announced last month broadens the alternative minimum tax by disallowing certain deductions and increasing the AMT capital gains inclusion rate to 100 percent from 80. The budget also adjusts the rules for intergenerational business transfers originally introduced in Bill C-208. AMT is an alternative tax that is calculated based on fewer deductions, […] Read more
Farmers should expect ownership succession rule changes
Succession planning options for farming corporations are set to change by the end of 2023. When business owners and farmers have an incorporated business, the ability to use the lifetime capital gains exemption on a sale to a third party or on a succession of the business to the next generation in the family provides […] Read more
Mental health key to successful farm succession
Farmer finds the tools that help her cope with depression are also useful as she and her husband plan their retirement
STROME, Alta. — Having the taxes organized and the yard in good shape are important when planning a farm retirement or succession plan, but just as important is open communication and good mental and emotional health. Farm transitions are hard and the family needs to have all the skills to cope, said Doreen Blumhagen of […] Read more
Couple’s retirement plan required professional expertise
Alberta family had difficulty developing a succession plan on their own until they decided to hire a retirement expert
Hiring a professional farm retirement expert was key to a successful farm division with all parties still talking to each other at the end, said Carol Penman. For more than 50 years the three brothers, Bev, Jim, and Donald, and their families had a successful mixed farm of grain, hogs and cattle south of Czar, […] Read more
Producers ponder semi-retirement
After more than 20 years working on their ranch, these cattle producers look to reduce their active farming lifestyle
Grazing livestock in the most efficient and ecologically sound way will always be in the future for Amber and Steve Kenyon. Grazing livestock on their northern Alberta farm may not always be in their future. “Our future is slowly getting out of the day-to-day and more into education and promoting,” said Steve Kenyon of Busby, […] Read more
Farm succession starts by gathering information
Workshops are available that help producers figure out what they need to do first to successfully transition their farms
STROME, Alta. — Dozens of farm couples drove through a winter storm to the small community hall in the hamlet of Strome to listen to accountants talk taxes, capital gains, trusts, liability, asset pools, shareholder agreements and death. Farm succession planning isn’t easy or exciting, but successful farm transitions take time, work and a bucket […] Read more
Power of attorney comes with limits when making gifts
An enduring property power of attorney is the written legal authorization in which a person known as the “grantor” designates a person known as the “attorney” to make decisions about the grantor’s property and finances. Essentially a POA allows the attorney to step into the shoes of the grantor for the purpose of making decisions […] Read more
